Greenlane Renewables announces deployment of capital for RNG project
by CM Staff
The funds will be used to progress the development company's landfill gas-to-RNG project to construction financing, expected in late 2022.
VANCOUVER — Greenlane Renewables Inc. through its subsidiary, Greenlane Renewables Capital Inc., announces its second deployment of development capital to a company focused on developing landfill gas-to-renewable natural gas projects.
Greenlane is deploying pre-construction development capital in the form of a convertible note agreement with funds to be advanced on a milestone achievement basis of approximately $0.7 million (US$0.5 million). The funds will be used to progress the development company’s landfill gas-to-RNG project to construction financing, expected in late 2022. Under the terms of the loan agreement, Greenlane has the option to convert the note into an equity interest in the development company in addition to realizing a return of capital.
The initial project planned by the development company is located in the midwestern USA and is estimated to generate over 250,000 MMBtu annually using a Greenlane supplied biogas upgrading system. Project revenue is expected to be generated from the sale of physical gas and D3 Renewable Identification Numbers (D3 RINs) under the US Renewable Fuel Standard (RFS) program or, alternatively, one or more long-term offtake agreements with natural gas utilities. The total project capital expenditure to be provided by third parties is expected to be approximately $23.0 million (US$18.0 million).
“We are rapidly moving forward with our development capital program,” said Brad Douville, President and CEO of Greenlane. “This transaction marks our second deployment and supports an innovative developer targeting the landfill gas-to-RNG space in the United States. We continue to see abundant opportunities in different countries around the world to add incremental value to project developers by providing development capital to accelerate RNG projects to the ready for construction phase. Our aim is to help de-risk projects and build scale in RNG origination, while securing Greenlane system sales and services and new long-term recurring revenue for Greenlane as the industry continues to expand.”